Today, Palm State Mortgage explains a few details about the Energy Efficient Mortgage, known as an EEM. Sometimes this is referred to as a “Green Loan.” The reason is obvious: this program provides a borrower with funds that are specifically tagged for energy-related improvements. Such improvements must meet two main standards:

1. They must enhance the energy efficiency of a home.

2. They must actually decrease utility bills each month.

Stated simply, Palm State points out that FHA’s EEM program assists homebuyers and homeowners in their efforts to economize on their utility expenses. Qualified borrowers can therefore, include the cost of energy efficient upgrades in their FHA loan, in their mortgage payment. EEM allows a borrower to finance energy conservation measures in their single FHA mortgage.  See more at this site.
How To Feel Good About Your Environment

• Conserve Energy In the Kitchen: Specifically, you might be awarded a loan of up to $15,000 for complying with Green energy efficient upgrades and appliances in your kitchen.

• Fix up, Seal up and weatherproof your exterior: You could be allowed up to $35,000 for cosmetic repairs, home improvements and upgrades.

• Do Not Forget: You deserve substantial energy savings, tax credits and utility rebates simply by making these repairs, whether you are on a “green loan” or not.

• FHA 203k Loans can be combined with the EEM Loan and result in another kind of green: money!  See more details in the Energy Efficient Mortgage Home Owner Guide, by clicking here.

It is a fact that homeowners with lower utility bills retain more income each month. They can afford to allocate a larger portion of their income to housing expenses, and thus pay a little more on their mortgage. There are special options available with the Energy Efficient Mortgage:

Savings Option 1.  Your energy savings dollars could be financed directly into your mortgage.  Enjoy your green repairs by paying a fraction more money towards your mortgage.

Savings Option 2.  You could save money on an “older home,” and feed your utility savings right back into upkeep of the house when your initial repairs are complete and paid for.

Savings Option 3.  You could qualify to buy a better home, in a better neighborhood, or with more square footage by “going green.”

The Big Determining Factor:  You have to pass a test!

An Energy Efficiency Examination “HERS,” also termed Home Energy Rating Systems, refers to an investigation by a trained Energy rater. He or she will evaluate details of a home, such as insulation, heating and cooling, and kitchen appliances. The inspector will then determine factors in your loan qualification. Read more about the requirements and lessons of a HERS report at this source, and see if an environmentally conscious, energy effecient “Green” loan could be right for you.